The Gap, Inc. (GAP)vsVictoria's Secret & Co (VSCO)
GAP
The Gap, Inc.
$24.93
-2.20%
CONSUMER CYCLICAL · Cap: $9.50B
VSCO
Victoria's Secret & Co
$44.56
+2.34%
CONSUMER CYCLICAL · Cap: $3.49B
Smart Verdict
WallStSmart Research — data-driven comparison
The Gap, Inc. generates 134% more annual revenue ($15.37B vs $6.55B). GAP leads profitability with a 5.3% profit margin vs 2.5%. GAP trades at a lower P/E of 12.0x. GAP earns a higher WallStSmart Score of 55/100 (C).
GAP
Buy55
out of 100
Grade: C
VSCO
Hold49
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-89.6%
Fair Value
$14.48
Current Price
$24.93
$10.45 premium
Margin of Safety
-329.5%
Fair Value
$13.12
Current Price
$44.56
$31.44 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Every $100 of equity generates 23 in profit
Reasonable price relative to book value
Every $100 of equity generates 24 in profit
Areas to Watch
2.1% revenue growth
5.3% margin — thin
Operating margin of 4.9%
Weak financial health signals
2.5% margin — thin
Earnings declined 5.7%
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : GAP
The strongest argument for GAP centers on P/E Ratio, Return on Equity, Price/Book. PEG of 1.39 suggests the stock is reasonably priced for its growth.
Bull Case : VSCO
The strongest argument for VSCO centers on Return on Equity.
Bear Case : GAP
The primary concerns for GAP are Revenue Growth, Profit Margin, Operating Margin.
Bear Case : VSCO
The primary concerns for VSCO are Profit Margin, EPS Growth, Debt/Equity. Debt-to-equity of 7.25 is elevated, increasing financial risk. Thin 2.5% margins leave little buffer for downturns.
Key Dynamics to Monitor
VSCO carries more volatility with a beta of 2.27 — expect wider price swings.
VSCO is growing revenue faster at 7.7% — sustainability is the question.
GAP generates stronger free cash flow (696M), providing more financial flexibility.
Monitor APPAREL RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
GAP scores higher overall (55/100 vs 49/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
The Gap, Inc.
CONSUMER CYCLICAL · APPAREL RETAIL · USA
The Gap, Inc. is a leading global apparel retailer founded in 1969, recognized for its portfolio of well-known brands such as Gap, Banana Republic, Old Navy, and Athleta. Headquartered in San Francisco, California, the company operates in over 40 countries and is dedicated to providing quality, value, and style to a diverse customer base. Emphasizing digital transformation and sustainability, Gap is expanding its e-commerce capabilities while focusing on innovative product development and strategic growth initiatives to maintain its competitive edge in the ever-evolving retail sector.
Victoria's Secret & Co
CONSUMER CYCLICAL · APPAREL RETAIL · USA
Victoria's Secret & Co (VSCO) is a leading specialty retailer recognized for its iconic women's lingerie, apparel, and personal care products, marketed predominantly under its renowned Victoria's Secret and PINK brands. The company employs a robust omnichannel strategy to optimize customer experiences and engagement, leveraging both physical and digital platforms. As VSCO undergoes a strategic brand repositioning to resonate with evolving consumer preferences, it remains committed to sustainability initiatives and capitalizing on growth opportunities within the competitive retail landscape. Its forward-thinking approach positions the company favorably for long-term value creation.
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